She also pointed out the hardware is only as good as the software that runs it. In Nest's case, the potential to launch a full line of smart--and well-designed--products must have been pretty attractive to Google.

It likely won't be the last big deal in the hardware space, what with other smart and design-centric startups like fitness trackers Jawbone and FitBit, as well as gesture-computing controller Leap Motion. If these guys continue to see growth, 2014 may be the year hardware takes center stage in the tech world.

"Nest's founders, Tony Fadell and Matt Rogers, have built a tremendous team that we are excited to welcome into the Google family," Google CEO Larry Page said in a statement to the press. "They're already delivering amazing products you can buy right now--thermostats that save energy and smoke/CO alarms that can help keep your family safe. We are excited to bring great experiences to more homes in more countries and fulfill their dreams.”

Fadell, a former Apple executive and iPod mastermind, and Rogers launched Nest in 2011. The company's signature product, a learning thermostat, has been a top seller for quite sometime now. The company also makes "smart" smoke and CO2 alarms. Just last week, Nest was rumored to be raising a $150 million round of funding, led by Yuri Milner's DST Ventures.